CapTrader is one broker you may have come across in your search that offers trading in stocks, ETFs, bonds, futures, and other instruments for investors of all experience levels.
In this full review, we’ll share everything that CapTrader has to offer so you can decide if it’s the right broker for your needs. So, let’s dig into this article.
Overview of CapTrader
CapTrader is an online broker based in Germany that gives you access to trade on over 50 exchanges worldwide. As a customer, you get a choice of two trading platforms – the beginner-friendly web trader and the advanced MT4 platform.
With CapTrader, you’ll pay no account fees or inactivity fees. Commissions start at $3 per trade. The minimum deposit to open an account is just $500. You can fund your account through bank wire, credit/debit cards, Skrill, or Neteller. Withdrawals are also free and processed within 1-2 days.
Regulation and Security of CapTrader
CapTrader is regulated by top-tier financial authorities, so you can trade with confidence. It operates under the regulatory oversight of Germany’s Federal Financial Supervisory Authority (BaFin). They require CapTrader to follow strict rules around capital requirements, audits, and reporting to ensure your funds and data are secure.
CapTrader is also a member of the German Deposit Protection Fund, meaning your deposits up to €100,000 are insured. This gives you peace of mind that your money is protected in the unlikely event anything happens to CapTrader.
With rock-solid regulation and security in place, you can focus on trading with CapTrader knowing your interests are well protected.
What You Can Trade on CapTrader
When trading with CapTrader, you have access to over 5,000 instruments across six different asset classes:
Stocks
Trade shares of major corporations listed on exchanges around the world, including the US, Canada, UK, Germany, France, Italy, Spain, Netherlands, Belgium, and Austria. Whether you prefer tech giants like Apple and Facebook or industrial leaders like GE and Siemens, CapTrader has you covered.
ETFs
Choose from a wide selection of exchange-traded funds (ETFs) that provide broad market or sector exposure. Trade popular ETFs like SPY, QQQ, or gold and commodity ETFs.
Forex
Speculate on the foreign exchange (forex) market and trade major, minor, and exotic currency pairs. CapTrader offers competitive spreads and deep liquidity for popular pairs like EUR/USD and GBP/USD.
Futures
Trade futures contracts on equity indexes, commodities, currencies, bonds, and interest rates. CapTrader provides access to major global exchanges like Eurex, CME Group, ICE Futures Europe, and Euronext.
Options
Buy and sell options on stocks, ETFs, indexes, and futures. CapTrader allows you to trade options with various expiration dates and strike prices on markets in the US, Europe, and Asia Pacific.
Bonds
Choose from a wide range of government and corporate bonds denominated in EUR, USD, and GBP. Trade bonds issued by countries like Germany, France, Italy, Spain, the UK, the US, and Canada as well as major corporations.
Fees of CapTrader
When it comes to fees, CapTrader keeps things simple. To open an account, you only need to deposit $500.
Fund your account through wire transfers, credit/debit cards, or e-wallets like Skrill and Neteller. Deposits are free and processed within 1 business day.
Making a withdrawal is also straightforward. Submit a request through your CapTrader account and funds will be sent back to the original source within 3-5 business days. There are no withdrawal fees for wire transfers over $100. For smaller amounts, a $25 fee applies.
CapTrader Customer Support
CapTrader’s customer support team is available 24 hours a day, 5 days a week to assist you. You can reach them via live chat, email, or phone.
The support staff are knowledgeable, friendly, and quick to respond. They can help with questions about funding or closing your account, technical issues, trading platforms, and more.
Alternatives to CapTrader Brokers
Looking for other brokers similar to CapTrader? Here are a few good options:
- IC Markets is an Australian broker offering tight spreads and over 230 tradable instruments. They have a user-friendly trading platform and provide excellent customer support.
- Pepperstone is an award-winning broker with competitive pricing and over 70 currency pairs. They are well-regulated and offer a choice of trading platforms to suit different needs.
- FXPro is a reputable UK broker offering competitive pricing across a range of markets. They provide innovative trading tools, platforms, and education suited for all experience levels.
- AvaTrade is a popular broker with a strong focus on education and multiple trading platforms to choose from. They are regulated in Australia, Japan, Ireland, and South Africa.
- easyMarkets is a CySEC-regulated broker offering fixed spreads, negative balance protection, and a choice of over 300 instruments to trade. They have educational resources for new traders to help them get started.
Is CapTrader Legit or a Scam?
So, is CapTrader legit or just another scam broker? Based on our research, CapTrader appears to be a legitimate broker. Here are a few reasons why:
Regulation
CapTrader is regulated by several major regulatory bodies, including BaFin in Germany, FCA in the UK, and FSMA in Belgium. These regulations require CapTrader to segregate client funds, provide transparent reporting, and meet strict capital requirements. This level of regulation helps ensure CapTrader operates legally and ethically.
Security
It utilizes industry-standard security protocols to safeguard client data and funds. This includes data encryption, firewalls, and two-factor authentication. CapTrader also participates in investor compensation funds in case of broker insolvency.
Track Record
CapTrader has been in operation since 2003 and serves over 200,000 clients worldwide. Their longevity and large client base suggest they are a reputable broker. While past performance is no guarantee of future results, CapTrader’s long track record is a good sign.
Pros and Cons of Using CapTrader
Pros
- Low fees. CapTrader has low trading and non-trading fees compared to most brokers. There are no fees for deposits or withdrawals and no inactivity fees.
- Wide range of assets. You have access to over 1,000 assets including stocks, ETFs, bonds, futures, options, and more across global exchanges.
- Reliable trading platforms. CapTrader uses the MetaTrader 4 and 5 platforms which are stable, customizable, and full of tools for analysis and automation.
- Good for beginners and pros. CapTrader suits both new traders with simple buy-and-hold strategies as well as active professional traders who need advanced features.
Cons
- Limited education. CapTrader lacks a dedicated education section with courses and webinars like some other brokers offer. You’ll need to source trading education elsewhere.
- No cryptocurrencies. CapTrader does not currently offer any cryptoassets for trading like Bitcoin or Ethereum. If crypto trading is important to you, you’ll need to use another broker.
Final Thought
CapTrader seems to offer a lot for traders looking for a reputable broker with competitive fees and a wide range of assets. The regulation, security, and customer service should give you peace of mind.
Of course, no broker is perfect for everyone, so weigh the pros and cons based on your own needs and trading style. But if you’re on the hunt for a broker that provides access to global markets with low fees, CapTrader is worth serious consideration.
